Reclassification 'Could Lead To Repricing'

Lenders could push for a repricing of historic loans after the reclassification of housing associations as public bodies, a consultancy has warned. Property consultancy Savills said the Office for National Statistics’ (ONS) decision to bring housing associations onto the national balance sheet last week could constitute “a material change in the market”. This could give lenders an opening to push for a repricing of loss-making, long-term loans signed before the recession, it warned. A briefing note produced after the ONS decision on Friday also warned landlords would likely face controls on new debt from the 2016 Budget onwards. Read more on the Savills website.

Bedroom Reclassification Could Lead To Refinancing

A top housing barrister warned landlords could trigger a repricing of their stock by reclassifying the number of bedrooms in their property. Dean Underwood, head of the housing team at Hardwicke Chambers said the move, which had been considered by some landlords to prevent tenants under-occupying, was not without risk. ‘Financial institutions are looking for any excuse to refinance loans they have with social landlords, and reclassifying could be one,’ he said. Mr Underwood cast doubt on the strength of recent successful bedroom tax tribunals to survive appeal. Read more on Inside Housing.